In a blogpost
dated September 10th 2019, Blockstack announced that its SEC-qualified
token offering has ended. More than 4,500 investors— including retail investors
in the US— participated in the offering which raised over $23 million.

Blockstack’s Reg
A+ Token Offering Explained

Just two months ago, Blockstack announced that it had
received SEC approval to launch the first-ever Reg A+ token offering.

The SEC’s Reg A+ exemption allows an issuer to raise up to $50
million from both accredited and non-accredited investors.

Now, the world’s first SEC-qualified token offering— which
was open to retail investors— has come to a close.

“For the first time, retail investors in the United States were able to participate in a token offering qualified by the SEC. More than 4,500 individuals and entities participated in the 2019 token offerings. Blockstack PBC has entered into agreements for more than $23M in these offerings (including both our SEC-qualified token offering and our offering to investors outside the United States made under Regulation S).”

Blockstack also noted that it strategically targeted investors from Asia, which may result in an additional $5 million through either a separate private placement or a follow-on SEC-qualified offering.

Blockstack held a Reg D offering back in 2017, which was restricted to wealthy accredited investors. Yet one of the company’s goals was to widen the path of investment opportunity to non-accredited investors. Blockstack said,

“We’re proud to deliver on our commitment to permit early community members who tried participating in 2017 but did not reach the wealth or income requirements for “Accredited Investor” status. These early community members were able to participate now at the same price as the 2017 Regulation D offering to Accredited Investors.”

The Reg A+ is one SEC-compliant method of raising funds throughsecurity tokens.

In differing
from Initial Coin Offerings (ICOs), the Security Token Offering (STO)
explicitly declares itself a securities offering, and therefore must abide by
its jurisdiction-appropriate laws and regulations as established by the
applicable governing body. In the United States, this body is the Securities
and Exchange Commission (SEC).